UGI Utilities Inc. is the first natural gas utility company in Pennsylvania to connect its delivery routes with wells in the Utica Shale play, according to a report by Pennsylvania Business Daily.
The connection is a direct link that carries natural gas between a well in the Utica Shale, two wells in the Marcellus Shale, and a UGI operated pipeline. For the new connection the company needed to build a new metering and regulating station system. The addition to the system increased the supply of natural gas to roughly 14,000 dekatherms and is supplying customers in Potter and Tioga counties.
The shale wells from which the gas is being transmitted are able to meet the energy requirements of over 50,000 households in UGI’s area of service. Kelly Beaver, the vice president of supply for UGI, said that, “UGI continues to explore opportunities to bring affordable, local natural gas to our customers throughout Pennsylvania.” She continued on to say that over 70 percent of the gas delivered with the system is produced in the Marcellus Shale, and adding the volumes of the less expensive Utica Shale gas adds confidence to their portfolio.